LAHORE: With the Punjab Food Department resuming its crackdown on illegal wheat transportation, the province’s flour price has risen significantly.
On Wednesday, the market price of wheat increased by Rs250 per maund and the price of a 20kg flour bag increased by Rs100. A flour sack now costs Rs2,550 in Lahore and Rawalpindi. A 100kg sack of maida now costs Rs11,000, up Rs500 from the previous week.
Wheat prices have risen by Rs400 per maund in the last week, while flour prices have risen by Rs200 every 20kg.
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The Flour Mills Association accused the food department of fostering market instability and crisis in Punjab in order to purchase four million tonnes of wheat.
While speaking to reporters, Pakistan Flour Mills Association (PFMA) head Asim Raza Ahmed stated that the department’s present policy of purchasing 2,000 tonnes of wheat daily will be insufficient to meet the target, resulting in a flour crisis in Punjab.
Wheat prices have risen to Rs4,450 per maund in Lahore and Rs4,550 in Rawalpindi.
Despite the price hike, flour mills are having difficulty obtaining the necessary quantity of wheat.
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The leader of the flour mill owners claimed that the department, with the help of district administrations, had effectively curtailed the mills’ access to wheat in Punjab.
While the mills had almost 1.5 million tonnes of wheat on hand at the time of last year’s harvest, they now only had roughly 700,000 tonnes, he said.
Wheat in Punjab was priced at Rs4,080 a maund two weeks ago, with a bag of flour costing Rs2,350.
He claimed that the department had begun its crackdown despite court rulings, and that the move would assist a gang that was taking advantage of the situation by blackmailing mills into purchasing wheat at inflated prices in order to maintain market supplies.
According to Asim Raza, despite a good crop in Punjab, the food department’s targets were not met, and flour mills continued to experience a wheat scarcity.
He stated that hoarders had accumulated millions of tonnes of wheat.
Asim Raza has demanded that individuals responsible for boosting wheat prices immediately after the arrival of new produce in Rawalpindi be investigated. He claimed that wheat licences in Rawalpindi had been revoked in the previous week.
According to sources, on June 12, the Rawalpindi deputy commissioner contacted Food Director Shozaib Saeed to report rising flour costs due to the non-issuance of wheat licences. Despite the director’s instruction, the licences have not been issued.
The Bahawalnagar district administration, according to mill owners, has refused to recognise government permits issued for the procurement of wheat in Lahore.
Malik Liaquat, head of the Chakki Owners Association, stated that increased wheat costs had also made production from the units problematic.
“So far, we have avoided raising the price, but if the government crackdown and ban on inter-district wheat movement continues, we will be forced to raise the flour price,” he continued.
A merchant, on the other hand, stated that the problem might be remedied if the government quickly announced the import of wheat.
According to food department sources, the department purchased more than 3.9 million tonnes of wheat. “If the government orders, we will stop further procurement of wheat,” an official stated.
